Legal Question in Wills and Trusts in California
What Should an Accounting Cover + How?
The trustee of a living trust had an Accountant send an Accounting at the end of the first year. This accounting is 1. vague, eg. Services rendered $, Expenses $ ??
2. lacks many totals & account numbers 3. Has an expense paid on one pg. & not on another summary pg. 4. Does not list all checks (most). 5. Doesn't address many unaccounted for, contents of Trust . 6. Some figures don't balance. Has no back-up documentation, which since, has been requested many times.
1. Is this a Proper Accounting? 2. What can a Beneficiary do ? 3. Do we have to go over it and ask specific questions.?
The trustee is very non-responsive. How long should we give her to produce supporting documentation?
Thank You Very Much!
1 Answer from Attorneys
Re: What Should an Accounting Cover + How?
Take a look at Probate Code Section 16063 (available online) for a very specific list of what must be contained in an account including a statement that the recipient of the account may petition the court to review the account and the actions of the trustee). I suggest you ask the trustee specific questions so she has some idea how to respond. If her answers are unsatisfactory to you and do not comply with Section 16063, then you have a right to petition the probate court to review the account and her actions (see also Probate Code Section 17200). Personally, I wouldn't give the trustee more than one month to comply before seeking court action. Note, however, that the trust may waive her obligation to make an accounting, so read the trust itself carefully before you act. You may need to seek the help of an attorney on this one. Note also that if you end up in court, the judge may order that the attorney's fees be paid out of the trust funds (and not by you). (This statement does not constitute my representation of you, nor is it an attorney-client communication.)
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